BT Seen With Strong Negotiating Position to Get Back Into Mobile

Faces Potentially Onerous Funding Arrangements, Analysts Say

LONDON—BT Group PLC, looking to storm back into mobile after more than a decade away, has a strong negotiating position, but faces potentially onerous funding arrangements as European rivals vie to sell the U.K. company their wireless businesses, analysts said.

BT on Monday confirmed early-stage acquisition talks with Telefónica SA’s O2 unit. The 168-year-old British company is also discussing a potential buy of EE, the U.K. mobile venture equally owned by Orange SA and Deutsche Telekom AG, according to two people familiar...